While legislative rules make it easier for Gov. Rick Perry to pass his agenda in a special session with the help of fellow Republicans, he may not enjoy the advantage of normal political alliances in his bid to overhaul the Texas Windstorm Insurance Association.

On that issue, lawmakers are divided, not on party lines, but geographical ones. While Republicans generally side with advocates of lawsuit reform - an important element in the TWIA legislation - key Republican senators on the Gulf Coast say they will view the issue through the prism of their district's geography and stand up for the right of their constituents to demand fair treatment from the insurance cooperative.

Perry indicated at a news conference Tuesday he would add the issue to the agenda of the special session of the Legislature, saying he was not confident the current structure of the windstorm association could handle a large storm this hurricane season.

Lawmakers attempted to reform TWIA, which as been beset by controversy, lawsuits and even a criminal investigation over its handling of nearly 100,000 Hurricane Ike claims from coastal residents, but negotiations broke down late in the regular session.

"I understand the concerns of those about the lawsuits that came out of TWIA, but there has to be a way for my constituents to bring forth a complaint when they are not treated fairly by TWIA," said Sen. Joan Huffman, R-Houston. "It's a balancing act."

Money, mitigation

Anticipating that Perry would ask lawmakers to address the issue soon, Rep. John Smithee, R-Amarillo, said he would file a bill "nearly identical" to the bill passed by the House but rejected by the Texas Senate. Smithee said he feared that without the legislation TWIA would be unable to sell bonds necessary for its financial solvency.

"What the coastal senators need to understand, if there is no money when the storm hits, there is no money accessible" to pay claims, he said. "I don't know what we'll do."

The Texas Senate rejected the House bill during the regular session, saying it failed to protect homeowners if the association dragged out or unfairly denied claims.

Senators backed a version of the bill that encouraged TWIA officials to mediate claims by allowing residents to sue for double damages and exact penalties for failing to promptly resolve claims.

State Sen. Tommy Williams, R-The Woodlands, noted that under a new Senate redistricting map, he will "be even more of a coastal senator" with Bolivar Peninsula added to his district.

"Everybody down there had their house wiped out pretty much to the slab," said Williams, normally a reliable Perry ally. "This issue has potential for factionalizing the state. We are part of Texas on the Gulf Coast like everyone else. We face some significant perils and the rest of the state benefits. It's part of the cost of having a coastline. You've got to have a way to help people mitigate that risk."

At the same time, Williams said the bill needed to address abuses, which led to lawsuits and enormous legal fees. "You can't hold a quasi public entity to the same standard as private insurance company. They are insuring a risk no one else will take," he said. "You have to do things a little bit different."

Political implications

The Texas Department of Insurance put TWIA into receivership this year and named a new administrator after lawsuits revealed questionable claims processes. The issue is heavily fraught with politics, as lawsuit abuse reform advocates contend that trial lawyers have enriched themselves by suing TWIA. Steve Mostyn, president of the Texas Trial Lawyers Association, earned millions in legal fees from lawsuits on behalf of coastal residents.

Mostyn, who spent nearly $4 million on television ads in an attempt to defeat Perry last fall, has been involved in legislative negotiations on how to reform TWIA.

State Rep. Craig Eiland, D-Galveston, a lawyer who also sued on behalf of storm victims, Wednesday questioned the need for any legislation. Since TDI intervened and replaced management, TWIA has demonstrated a better record of handling claims. A January storm in Corpus Christi resulted in 7,500 damage claims to TWIA, he said. So far, 96 percent of the claims have been resolved without a lawsuit.